Commercial electricity in Austin: Austin Energy territory.

Why Austin businesses can't choose a supplier

Texas opened most of its electricity market to retail competition in 2002, but choice only applies where the local utility takes part. Municipally owned utilities and electric cooperatives may decide for themselves whether to opt in, and regions outside the ERCOT grid were never opened to competition. Austin Energy's service area is one of those places, so businesses there buy power from Austin Energy at its published tariff rates rather than from competing retail providers.

What that means for your bill

• Your rate comes from Austin Energy's tariff, not a negotiated supply contract — there's no supplier to switch to and no renewal to time.
• The tariff still has options. Commercial rate schedules differ by size, voltage, and demand, and businesses on the wrong schedule are common.
• Demand charges — what you pay for your highest peak kW — are often a large share of a commercial bill, and they respond to how you run equipment.

What you can still control

• Rate schedule review: confirm you're on the cheapest schedule your usage qualifies for.
• Peak demand: staggering start-ups and shifting flexible loads lowers the kW you're billed on.
• Power factor: some commercial tariffs penalize low power factor; correction equipment can pay for itself.
• Efficiency rebates and on-site solar or storage, subject to the utility's own programs and interconnection rules.

Sites outside Austin Energy's territory

Utility boundaries don't follow city limits. Some addresses with a Austin mailing address sit in a neighboring deregulated zone, and multi-site businesses often have locations elsewhere in Texas where they can shop for supply. Enter a site's ZIP code above to check it.